Children for life?

A new survey from GE Life reveals that the UK is becoming a nation of 'children for life', with many parents subsidising their children far later into adulthood than a generation ago - even once their dependents have become parents themselves. This raises the concern that many may leave themselves out of pocket in later life.

66% of the over 50s questioned received no financial help from their parents when they were in their 20s. But at least 64% currently help their grown-up children because they need their assistance or feel it's their responsibility as a parent. This is a real indication of how times have changed for today's twenty-somethings, who increasingly seem to be turning to the Bank of Mum and Dad.

Half of parents have paid towards their child's first car, spending an average of £1,854 and totalling more than £18 billion, while 43% of parents have paid an average of £2,877 towards their child's wedding - a total of £24 billion. Meanwhile, more than a quarter have helped their child get on the property ladder, spending an average £5,796 each - altogether £32 billion.

University fees are also proving a huge investment for parents - who pay out an average of £7,665 over three years for their children - totalling more than £61 billion.

In addition to living with their parents longer, children over 18 years old are being helped-out by their parents on a daily basis, with 30% of over 50 year olds saying they pay towards some, or all, of their children's living costs.

Financial support even extends beyond the grave. 49% of over 50 year olds say they've already set aside cash for their children, with a further 24% saying they plan to do so, in the event of their death. At least 84% also say they plan to leave their property to their children. However, it doesn't stop with children; 20% of grandparents are also paying out regularly for their grandchildren.

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2007-02-12 10:25:29 © Moneyextra.com